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Approach

Hiring locally and sourcing from local suppliers benefits host communities and countries in many ways, including reduced poverty, improved skills and the opportunity to achieve long-term growth and economic diversification. The right to an adequate standard of living is a salient human rights issue associated with our business activities, and increasingly, local employment and procurement are important tools to help mitigate risk and maximize opportunities by building community and government support, reducing costs, improving efficiencies and creating a more inclusive and diverse workplace.

Our commitment to providing local employment and economic development opportunities is stated in both our People Policy and Sustainability and Stakeholder Engagement Policy. Our Local Procurement and Employment Standard sets the minimum requirements to ensure our operations create direct and indirect jobs and business opportunities aligned with stakeholder expectations.

Using data from baseline studies and input from relevant stakeholders, all sites must develop plans that promote local employability and skills development, diversity of the workforce, small business development and sustainable business opportunities, and, where applicable, set local employment and procurement targets. Plans are reviewed annually to ensure alignment with our global inclusion and diversity strategy and to identify opportunities for improvement.

In Australia, Ghana and North America, local procurement targets are regionally based due to the number of shared contracts among sites, while our local procurement target for the South America region differentiates between Yanacocha (in Peru) and Merian (in Suriname) due to their geographic distance from each other and the fact that the two operating sites do not have any shared contracts. We also engage with local stakeholders to agree on definitions and qualifications related to the categories we use to designate businesses, contractors and employees (see definitions referenced in the table “2017 Local employment performance” below).

Ongoing engagement with local stakeholders regarding job and procurement opportunities and our recruiting and procurement procedures help ensure alignment with expectations and commitments.

All suppliers – even specialized local micro enterprises – must undergo screening, agree to our contract terms and meet our quality, delivery, service and competitive pricing requirements. In regions where gaps in local capacity exist, we work with governments and NGOs – as well as our current suppliers – to develop the skills or capacity needed to become employed by, or a supplier to, Newmont.

2017 Performance

Local employment and skills development

Efforts to advance our global inclusion and diversity strategy and meet our site-based local employment targets are summarized in the following table. Our North America region does not set local employment targets as the workforce is largely from the local area. However, our Nevada sites actively promote employment opportunities to Native American communities.

Region Site(s) 2017 Local employment performance
Africa1

Ahafo

At the end of 2017, local community members represented 40.2 percent and 46.4 percent of the total workforce (inclusive of contractors) at Ahafo and Akyem, respectively, exceeding our target of 35 percent at both sites. The longer-term employment commitment at our Akyem operation is 50 percent within 10 years of commencing operations.

Akyem

Australia2

Boddington

All sites in Australia met or exceeded their target. At the end of 2017, Aboriginal employment (inclusive of contractors) at Boddington, KCGM and Tanami totaled 93, 53 and 104 individuals, respectively.

KCGM

Tanami

South America

Yanacocha3

Residents from Cajamarca represented 63.3 percent of Yanacocha's workforce at the end of 2017, exceeding our target of 60 percent.

Merian1

At Merian, all unskilled positions are awarded to local Pamaka community members, and through development programs, we aim to move employees into skilled, professional and management positions.

At the end of the year, 236 employees – representing nearly 19 percent of the total workforce – were of Pamaka ancestry.

Key Terminology:
1“Local” or “local-Local” refers to persons from within the catchment area around our Ahafo and Akyem mines and to Pamaka communities near our Merian mine; validation process usually established through the local employment agreement.
2“Aboriginal” or “indigenous” refers to both aboriginal and Torres Strait Islander peoples in Australia.
3“Local” in Peru refers to the local Cajamarquino people per agreed-upon definitions with the community.

Local procurement and capacity building

Globally, we set a total local spend goal of $406 million in 2017, which we exceeded by more than $250 million. Our Australia region exceeded its target by more than $100 million as a result of a decision to not execute an in-sourcing initiative. The North America region exceeded its target by more than $138 million due to a process improvement initiative that aligned local definitions and categorization within our data systems and allowed us to both track local spending at the Cripple Creek & Victor operation (which was not included in the target) and categorize spend that was previously uncategorized.

Among the notable local supplier programs and events during 2017:

In Africa:

  • We continued work with the Ghana Chamber of Mines to develop a long-term national policy and supplier development program to help promote sourcing from local businesses within the mining industry and beyond.
  • In Ghana, we executed forward purchasing agreements (FPAs) – which are a commitment to buy an asset at a specified price on a future date – with Carmeuse Limited for lime, West African Forging Limited (WAFOR) for grinding media, Vivo Energy for lubricants, and Kal Tire for tire re-treading. The FPAs provide assurance to the manufacturers and help in their planning process. In addition, we established vendor held stock (VHS) arrangements for Vivo Energy, Orica Ghana and Kal Tire to provide assurance of a longer-term commitment to procure from them.
  • At Ahafo, as a result of work that began in 2015 to promote women-owned enterprises in host communities, the operation began awarding contracts for soap to a business owned and operated by eight local women.

In North America:

  • Our Nevada operations awarded a long-term contract to Graymont, a supplier of lime and limestone products. The contract supplies Newmont with around 40 percent of the output from Graymont’s Pilot Peak lime plant in eastern Elko County and supports a number of jobs at the Pilot Peak plant.

In South America:

  • At our Merian operation in Suriname, we finalized the framework and developed a road map for a skills development program and for engaging with local community members on employment and/or business opportunities. The operation also advertised business opportunities for the Pamaka community in villages and on the local radio station and supported local vendors with setting up bank accounts and preparing paperwork.
  • In Suriname, we constructed two new docks in the village of Langa Tabiki and another eight in neighboring Pamaka villages. The construction projects were awarded to local companies that committed to hire workers from the villages where the projects were carried out and to use local enterprises to supply the sand and gravel used to build the concrete docks.

Future Focus

Our 2018 local procurement target for all sites is $821 million – a nearly 25 percent increase from our local spend in 2017 – and reflects the addition of new targets at CC&V and Merian and the identifiable opportunities within the context of the 2018 regional business plan.

The site-based local employment and regional procurement targets for 2018 are as follows:

Region Site 2018 Local employment target
Africa

Ahafo

35 percent local-local workforce (including contractors). Targets were set in consultation with the community.

Akyem

35 percent local-local workforce (including contractors). Targets were set in consultation with the community.

Australia

Boddington

93 indigenous individuals (including contractors)

KCGM

42 indigenous individuals (including contractors)

Tanami

105 indigenous individuals (including contractors)

South America

Yanacocha

60 percent local employees

Merian

More than 200 employees of Pamaka ancestry and continue to move unskilled Pamaka to skilled positions

To achieve our targets and contribute toward the UN Sustainable Development Goal to promote decent work and economic growth (SDG-8), our areas of focus include:

  • Continuing to engage with local youth groups about job opportunities at our Ahafo mine and collaborating with external stakeholders to improve the local employment validation process, increase training opportunities, build vocational skills, support entrepreneurship and local procurement, and create alternative employment opportunities.
  • Launching an aboriginal employee mentoring program and developing an indigenous vocational education and training pathway at Boddington – including pre-apprenticeship scholarships – to improve indigenous participation in the specialist trades.
  • Implementing our formal local procurement program at Merian, which includes a linkages program – similar to our program in Ghana – that helps develop local micro-, small- and medium-sized enterprises that provide goods and services to both the mine and nonmining entities and supports a diversified local economy.

We will also work with our local suppliers to ensure they fully understand our Supplier Risk Management program – which we will launch in 2018 – and will provide support as needed to identify risks and develop action plans.